You’re interested in becoming a potential franchise owner, but you’re not quite sure if you’re ready to buy. Investing in a franchise opportunity is a huge decision, both personally and professionally. So, you want to ensure that you’re totally ready before you sign the papers.
Following are five statements that demonstrate franchise readiness. If you’re able to check off all five, you know you’re on the path to making a wise franchise investment.
1. You’ve chosen the right industry.
When you first begin your hunt for the right franchise to buy, you’re likely to examine many industries, including options like health and wellness, food service and professional services. Choosing the right franchise industry is key to achieving success with your business. You want to find an industry that has these specific characteristics:
- Consumer demand
- High profit margin
- Quality products
2. You’ve picked a supportive franchisor.
Once you’ve narrowed your franchise opportunities down to a strong and thriving industry, find a franchisor that goes above and beyond when it comes to support.
There are a number of franchisors that sign you up, cash your check and move onto the next investor. But, you want a franchisor that offers both initial and ongoing support for your franchise venture. Look for support demonstrations like extensive training, sales assistance, location selection guidance and marketing efforts.
3. You have the capital.
Generating the capital required to buy a franchise is a part of the process – one that must be approached carefully and thoughtfully. You never want to put your family’s finances or your future in jeopardy by investing in a business you can’t afford. Take time to really assess your funding options before making a commitment to a franchise opportunity.
There are smart, stable funding options that you could look into, including:
- Personal savings
- SBA loans
- 401(k) rollover funds
- A partner investor
In addition to your franchise investment costs, it is highly recommended that you ensure you have enough money to cover your personal expenses for up to six months or a full year. Your franchise location may not turn a profit before then, so you want to be prepared to cover the cost of living.
4. Your family is behind you.
You may be purchasing a franchise for yourself, but it impacts your family’s future, too. There are going to be a lot of long hours spent at your business, preparing it to open and running it on a daily basis. It’s both a commitment and a sacrifice for your family and yourself. So, make sure your family is ready to take on franchise ownership with you.
5. You’re trained.
Whether it's taking advantage of the training provided by your franchisor or investing in your own training to supplement those offerings, you need to master various business skills to successfully run a franchise.
You may have experience as a manager but never worked in sales. Maybe you were in the marketing department of your last company, but you’re uncomfortable managing finances for a business. Select training courses based on the skills you need to polish, and take advantage of every training opportunity, mentorship program or educational conference your franchisor offers.
Interested in speaking to an expert about your future as a franchise owner? Schedule your free consultation now.